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Relief Program for Small Businesses Runs Out of Funds; Now Unable to Accept New Applications
On Thursday morning, a small business relief program ran out of funds. This happened “as billions of dollars in additional coronavirus aid remain stuck in congressional limbo,” reported Fox Business.
According to the Small Business Administration, the agency is “currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.”
Small business loan program runs out of money as Democrats, GOP clash over new funds https://t.co/hHsDYWaeVI pic.twitter.com/DlzJU7352e
— The Hill (@thehill) April 16, 2020
Treasury Secretary Steven Mnuchin asked Congress last week to allot $250 billion more for the program. However, Senate Democrats rejected a GOP attempt to approve it. They “maintained that additional cash should include emergency funding for hospitals and states, as well as some changes to the small business aid program.”
White House spokesperson Judd Deere said that “the President and his Administration will continue to prioritize relief for all those affected by this unprecedented crisis, which is why Congressional Democrats must stop playing politics and blocking additional emergency relief for our Nation's small businesses.”
The program launched less than two weeks ago. It “provides loans at ultra-low interest rates to businesses with fewer than 500 employees,” as per Fox Business. This is done “to incentivize them to keep staff on payroll or rehire workers who have already been laid off.”
The Labor Department recently revealed that in four weeks until April 11th, 22 million Americans filed for first-time unemployment benefits.
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